Finance and Accommodation For Old Age

How to balance your financial position and the accommodation required when aging

The greater your affluence the greater your opportunities for choice. However, for most people growing old is associated with a decline in their disposable income. Recently there has been much discussion about WOOPIES (well-off older people) which has attracted the attention of some politicians and the advertising industry. It is true that the distribution of wealth in the advanced countries are changing. It is reported that 40 per cent of personal wealth in these countries are now in the hands of the over 55s. This improvement in the financial position of some elderly people is due to a combination in the growth of owner-occupation and the more widespread introduction of occupational pensions.

However, the status of owner-occupiers may be a very mixed blessing. On the positive side, it may provide the owners with the option of trading down. Thus a large family home can be sold to buy a smaller and more suitable dwelling for their declining years, the residue from the transaction being invested to provide regular supplements to income. For other old people the ownership and maintenance of an expensive home may be seen as financially disadvantageous. Emotional ties may discourage them from disposing of their long-term home. Fortunately there are solutions to both dilemmas. The remortgaging of property will allow the participant to reinvest in an annuity and thus provide a regular supplement to income. Clearly, individual circumstances must be taken into account and professional advice and help should be sought. Grants can be claimed to maintain or convert accommodation to make it suitable for new needs. For this purpose, help should be sought from the local authority housing department and voluntary organizations, such as housing associations.

Many elderly people still live in rented accommodation and some rely entirely on state benefits. For these pensioners their period of retirement is going to be one of tight financial arrangements and declining choices.